Investors may want to go back to basics when it comes to navigating stock market volatility.
According to F/M Investments CEO Alex Morris, they should consider increasing bond exposure.
“There are a lot of safe shelters out there, especially at the short edge of the curve,” Morris told CNBC’s “ETF Edge” this week. “When I look at where the stock market is heading, I didn’t like the wipeout a few weeks ago. There’s a little more banana peel in front of us.”
His comments came from the Miami Future Proof Meeting site. There, financial advisors and wealth management executives exchanged ideas and discussed technologies, including the use of generative artificial intelligence.
According to the F/M Investments website, Morris’ Firm provides investors with access to “innovative” strategies.
Morris, who is also the company’s chief investment officer, sees economic background and tariff risk as another reason for buying bonds.
“if [DC] The policy will remain where it is and the short edge of the curve will be a great place,” Morris added.
Jeffrey Katz, TCW’s managing director, also attended the meeting, but is still receiving benefits in bonds. “Bonuses act in the way that they should act within the context of their 60/40 portfolio,” he told ETF Edge.
Katz’s company is behind the TCW Flexible Income ETF, which has been in existence since November 2018.
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TCW Flexible Income ETF Performance
As of February 28th, FactSet shows that Top Holdings, a fund trading on the exchange, contains more than 4% of US Treasury bills. It is also rated 4 stars by Morning Star.
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